Moody's affirmed its ratings on self-storage real estate investment trust Life Storage Inc. unit Life Storage LP, while keeping its ratings outlook at stable.
The action pertains to the company's Baa2 issuer and senior unsecured debt ratings and its (P)Baa2 senior unsecured debt shelf rating.
Moody's said the ratings take into account Life Storage's increased scale, strong financial flexibility, and solid fixed-charge coverage amid rising supply in some of its biggest markets.
The rating agency identified a challenging operating environment for the self-storage sector and geographic concentrations as main credit concerns for Life Storage.
The stable outlook factors in the rating agency's expectation that the REIT will maintain its conservative balance sheet and liquidity position, while also improving its operating margins across its portfolio.